Your Firm Is Considering Leasing a New Computer

question 28

Multiple Choice

Your firm is considering leasing a new computer. The lease lasts for 9 years. The lease calls for 10 payments of $1,000 per year with the first payment occurring immediately. The computer would cost $7,650 to buy and would be straight-line depreciated to a zero salvage over 9 years. The actual salvage value is negligible because of technological obsolescence. The firm can borrow at a rate of 8%. The corporate tax rate is 30%. What is the after-tax cash flow from leasing in years 1-9?

• A) $255
• B) $955
• C) $1,295
• D) $1,850

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Definitions:

Religiously Unaffiliated

Individuals who do not identify with any organized religion, including atheists, agnostics, and people who describe their religion as "nothing in particular."

Revitalization Movements

Social movements aimed at renewing, rejuvenating, and inspiring a community or society, often in the context of religion or cultural identity.

Haitian Vodou

A syncretic religion that combines elements of West African, Catholic, and Native American traditions, practiced predominantly in Haiti.

Syncretic Religious System

A religious or belief system that combines elements from different religious traditions and practices.